February 13, 2018
Technology Drives 2018 Builder Trends
Home connectivity, improved engineered products, and customization are some of the trends in home construction and repair/remodeling design identified by John Burns Real Estate Consulting. The trends identified include the internet of things (IoT) technologies opening the door-to-whole-home connectivity. The firm says Amazon’s Alexa and other personal assistants have opened the flood gates for smart home products, especially in home security, plumbing, appliances, and HVAC. As well, today’s engineered products offer great design and less maintenance. They look increasingly like their natural counterparts, often at better or comparable prices. Customization has also become simpler. John Burns says customizable product offerings this year focused on minimizing costs and complexity for the consumer. Standouts included private-label hardware options, mix-and-match handle/spout colours and finishes, and appliance panel customizing options. Backed by significant consumer research, building products companies continue to offer new products to stay one step ahead of the competition, says the firm.
Dodge Momentum Index Slides
The Dodge Momentum Index dropped 5.1 per cent in January to 143.7 from the revised December reading of 151.5. The index is a monthly measure of the first (or initial) report for non-residential building projects in planning in the U.S., which have been shown to lead construction spending for non-residential buildings by a full year. The commercial component of the index was 7.8 per cent lower in the month, while the institutional component was down 0.9 per cent. The fourth quarter of 2017 was particularly strong and January’s retreat returns it to a more sustainable level. On a year-over-year basis, the index is 7.7 per cent higher, with both the commercial and institutional components showing growth over January 2017. This suggests that non-residential building construction should continue to post moderate gains in 2018.
Strong Growth Forecast For Fall Protection Equipment
The global fall protection equipment market is expected to grow by more than five per cent from 2018 to 2022, says research by Technavio. The rise in global construction activity is a key driver supporting the growth because any construction workplace that is elevated requires the use of fall protection equipment for workers. And, although the construction industry witnessed a significant dip during the global recession of 2008, the market is witnessing a steady revival with the recovery of the global economy. Technavio says the increase in urbanization and the growth of the population are necessitating growth in infrastructure along with an increase in residential and commercial establishments. This bodes well for the growth of the construction industry and the fall protection equipment market.
Mohawk Earnings Climb
Mohawk Industries, Inc. net earnings were $240 million for the fourth quarter of 2017, an increase compared to net earnings of $234 million in the fourth quarter of 2016. Adjusted net earnings were $256 million, a five per cent increase over adjusted net earnings of $243 million. Net sales for the quarter were $2.4 billion, up 8.5 per cent over net sales of $2.2 billion in the year-ago period. The global ceramic segment sales increased 10 per cent year over year, while the flooring North America segment's sales increased three per cent and the flooring rest of the world segment's sales increased 18 per cent.
February 12, 2018
Businesses Need To Upgrade Payment Systems
Businesses of all sizes need to upgrade their payment systems because the current way Canadian businesses process payments costs them $2.9 to $6.5 billion annually, says a study by Payments Canada and Ernst and Young LLP (EY Canada). It shows that delays in payments processing and a lack of data and transparency in payment messaging create a number of inefficiencies for small, medium, and large enterprises. Current processes are labour intensive and provide poor visibility into supply chain and collections. They offer a limited predictability of cash inflows and outflows and cause difficulty in tracking cross-border payments. The report says the small businesses have a continued reliance on manual processes and legacy technology. The introduction of new systems, rules, and standards as part of Payments Canada's modernization program will foster a faster, safer, and more data-rich payments environment. Besides the introduction of new systems for high-value, batch retail, and real-time payments – which will operate under an enhanced risk, regulatory, and rules framework – the primary efficiency enhancement for businesses is anticipated to come from adopting the ISO 20022 data standard. The standard enables the transfer of rich data with payments, a change that has the potential to improve automation and efficiency, reducing many of the pain points in accounts payable and receivable, particularly for those organizations processing large volumes of payments. The full study is available here
Home Sales Strong In Montreal
A total of 2,598 residential sales were concluded in January in the Montreal census metropolitan area (CMA), an increase of 13 per cent over January 2017, says the Greater Montreal Real Estate Board (GMREB). This was the best January sales result in eight years. All six main areas of the Montréal CMA registered an increase in sales in January, with Saint-Jean-sur-Richelieu (80 sales) and the South Shore (628 sales) leading the way with respective sales increases of 31 and 22 per cent. Laval and the Island of Montréal went head-to-head, as both of these areas registered an 11 per cent rise in sales. On the North Shore and in Vaudreuil-Soulanges sales were up by nine per cent and seven per cent, respectively. For a fourth consecutive quarter, condominiums registered the largest increase in sales, this time jumping by 19 per cent. Plexes and single-family homes weren't far behind, with respective increases of 15 and 10 per cent.
BMR Renovation Centre Celebrates Grand Re-opening
La Coop Unicoop held a grand re-opening for its BMR renovation centre in Saint-Joseph-de-Beauce, QC. The store underwent a $150,000 renovation to optimize the layout and modernize the facility. The store, which is also celebrating its 10th anniversary, now meets BMR standards. The retail and energy division of Unicoop operates 10 renovation centres and hardware stores in the Beauce, Bellechasse, Montmagny, and Orleans regions in Quebec.
Molson Speaks For CTEQ
Andrew Molson, a seventh generation of the Molson family, has been appointed as the spokesperson for Le Centre de transfert d'entreprise du Québec (CTEQ), an organization that supports entrepreneurs with a comprehensive approach to business transition. His mission will be to raise business succession planning awareness amongst owner-managers/entrepreneurs in Quebec. “All over Quebec, there are men and women at retirement age who are still passionate about the companies they run,” says Molson. “However, they have to learn how to step aside for the good of all they have created over the years. As spokesperson, I hope to get entrepreneurs thinking about succession, particularly those who care deeply about the future of the businesses they have invested so much time and effort in.”
Beacon Sales Up 12 Per Cent
Beacon Roofing Supply, Inc. sales were $1.12 billion in the first quarter of 2018, an increase of 12 per cent over sales of $1 billion in the first quarter of 2017. Residential roofing product sales increased 11.1 per cent, non-residential roofing product sales increased 5.4 per cent, and complementary product sales increased 27.5 per cent over the prior year. Adjusted EBITDA grew 7.4 per cent to $86 million versus $80 million in the prior year. Net income for the quarter was $67.6 million, compared to $20.4 million in 2017. Adjusted net income was $46.7 million compared to $34.4 million a year ago.
Simpson Has Double Digit Increase
Simpson Manufacturing Co., Inc. had consolidated net sales of $231.7 million for the fourth quarter of 2017, an increase of 16 per cent compared to consolidated net sales of $200.2 million for the fourth quarter of 2016. North America net sales of $190.9 million increased 10 per cent compared to $172.8 million. Gross profit for the quarter was $102.7 million, an increase of eight per cent compared to gross profit of $95 million in the year-ago period. Income from operations was $24.7 million, a decrease of five per cent compared to income of $26.1 million a year ago. Consolidated net income was $13.1 million compared to net income of $17.4 million.
Home Show Features Outdoor Trends
Livable outdoor spaces with specific purposes, cozy fire and water elements, and simplicity and low maintenance are just some of the outdoor trends for 2018 from HGTV’s ‘Curb Appeal.’ More from Curb Appeal and other home and garden specialists, including designers, celebrities, top retailers will be featured at the ‘2018 National Home Show’ presented by RE/MAX and co-located with Canada Blooms. It takes place March 9 to 18 at the Enercare Centre, Exhibition Place, in Toronto, ON. For more information, visit www.nationalhomeshow.com
February 9, 2018
January Canadian Housing Starts Trend Stable
The trend in housing starts was stable at 224,865 units in January 2018 compared to 226,346 units in December 2017, says the Canada Mortgage and Housing Corporation (CMHC). This trend measure is a six-month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts. Steady for the third consecutive month, the trend reflects higher starts of multi-unit dwellings in urban centres, which has offset lower starts of single detached homes. The standalone monthly SAAR of housing starts for all areas in Canada was 216,210 units in January, essentially unchanged from 216,275 units in December. The SAAR of urban starts increased slightly by 0.2 per cent in January to 198,400 units. Multiple urban starts essentially held steady at 134,685 units in January while single-detached urban starts increased by 0.6 per cent to 63,715 units. Rural starts were estimated at a seasonally adjusted annual rate of 17,810 units.
NRF Forecasts Retail Sales Rise
The National Retail Federation forecasts that U.S. retail industry sales will grow between 3.8 and 4.4 per cent over 2017. Online and other non-store sales, which are included in the overall number, are expected to increase between 10 and 12 per cent. The numbers exclude automobiles, gasoline stations, and restaurants. U.S. retail sales grew 3.9 per cent in 2017 over 2016 to $3.53 trillion, which exceeded NRF’s forecast for growth between 3.2 and 3.8 per cent. “Despite headlines to the contrary, the retail industry is strong, growing, and meeting consumer demand with the products they want at the prices they expect and the shopping experience they want to have, online or in store,” says Matthew Shay, president and CEO of NRF. “With consumer confidence high, unemployment low, and wages growing, there is every reason to believe that retail sales will be robust throughout the year.”
Many Shoppers Overspent Over Holidays
Forty-two per cent of Canadians admit they overspent on their holiday budgets, spending on average $530 beyond what they intended, finds a poll by RBC. The ‘2018 Holiday Spending & Saving Insights Poll’ shows that shoppers in Saskatchewan and Manitoba (48 per cent) and Ontario (45 per cent) led the country in overspending their holiday budgets. The amount of money overspent varied widely, from an average of $652 in Ontario to an average of $363 in Saskatchewan and Manitoba. Shoppers aged 18 to 34 made up the largest group of overspenders (55 per cent), compared to shoppers aged 35 to 54 (43 per cent) and 55+ (29 per cent). As well, while more women than men overspent this past holiday season (45 per cent women; 38 per cent men), women overspenders spent less money than their male counterparts ($485 versus $587). When asked what they would do differently in 2018 to be ready for this year's holiday expenses, overspenders say they would plan to save on a regular basis (43 per cent) and plan ahead for holiday spending by budgeting earlier in the year (36 per cent).
BMO Launches Small Business Credit Cards
BMO Bank of Montreal has launched four credit cards for small business owners. Rewards include better earn rates on categories preferred by small business owners such as gas and office supply purchases and phone and internet bills. The cards also offer reward options, low interest rates, and competitive annual fees, as well as insurance packages. Users can pool points earned under both the BMO Rewards program and the AIR MILES Rewards Miles program. The cards feature higher available limits with no minimum income requirements.
Anwar Leads Technology
Yasir Anwar is chief technology officer for Williams-Sonoma. He will lead all technology aspects of the company’s digital experience, retail stores, and supply chain, and will oversee its 3-D imaging and augmented reality platform, Outward, which it acquired last year. Previously, he served as executive vice-president and chief technology officer of Macy’s.
Amazon Sales Strong
Amazon.com, Inc. had net sales of $60.5 billion for the fourth quarter of 2017, a 38 per cent increase over net sales of $43.7 billion in the fourth quarter of 2016. Operating income increased 69 per cent to $2.1 billion in the quarter, compared with operating income of $1.3 billion in the year-ago period. Net income was $1.9 billion compared with net income of $749 million.
Norbord Earnings Climb
Norbord Inc. had adjusted earnings of $123 million for the fourth quarter of 2017 compared to adjusted earnings of $55 million in the fourth quarter of 2016. Adjusted EBITDA was $204 million for the quarter, versus $115 million a year ago. North American OSB shipments for the quarter were up two per cent versus the third quarter and were two per cent lower versus the same quarter last year. In Europe, shipments increased five per cent over the prior year.
February 8, 2018
Multi-family Leads Building Permit Gains
Canadian municipalities issued $8.1 billion in building permits in December, up 4.8 per cent following a 7.3 per cent decline in November, says Statistics Canada. The December increase stemmed from higher construction intentions in the residential sector. Across Canada, all components climbed in 2017, up 10.4 per cent from the previous year, led by the multi-family dwelling component. Construction intentions for single-family homes led the rise in December. Canadian municipalities issued $2.8 billion in permits for single-family dwellings, rising 8.9 per cent from the previous month and the largest month-over-month increase in 2017. Ontario reported the largest gain, up 15.7 per cent from the previous month. The value of permits for multi-family dwellings increased to $2.4 billion in December, up seven per cent from the previous month. Higher construction intentions in British Columbia led to the rise as the province outpaced Ontario and Quebec for the largest contribution to the national total.
Lowe’s Uses Holoroom To Train Employees
Lowe’s Innovation Labs is bringing its augmented and virtual reality experiences from the consumer to its employees. The company introduced a new iteration of ‘Holoroom How To,’ called ‘Holoroom How To: Red Vest’ – an employee training platform that teaches associates how to use specific in-store equipment through virtual reality. This version of the Holoroom was built specifically for Lowe’s associates to provide them with greater project knowledge, more motivation, and increased confidence to help address customers’ window fashion needs. Beyond the educational benefit, the platform projects a life-like simulation that teaches associates every step of the process as they advance through the module. The hands-on practice lets associates learn from potential mistakes without waste of materials or dissatisfied customers. More than 400 associates have tested the experience and over 90 per cent report that virtual reality training helps them to better serve customers.
Home Depot U.S. To Carry Tesla Solar
The Home Depot plans to offer Tesla solar energy services in U.S. stores and online. The company says that customers will have access to Tesla Residential Rooftop Solar along with its rechargeable battery technology known as Powerwall. Tesla will roll out branded selling spaces at 800 of the retailer’s locations and will be staffed by Tesla employees. The products will be featured in high-profile displays with some locations offering visual demonstrations on how the products work.
Sellick Opens Upgraded Factory
Rough-terrain forklift manufacturer Sellick Equipment Limited has opened a $21 million manufacturing facility in Harrow, ON. The 126,000-square-foot factory was designed for product innovation, improvement to quality control, and flexibility in product design. All areas of the manufacturing process were upgraded including a new machining centre consisting of CNC-controlled laser cutting, milling, and turning machines, automated storage and retrieval systems for raw materials and aftermarket parts, and a state-of-the-art metal preparation and paint line. Sellick is a subsidiary of Avis Industrial Corporation.
Johnson Joins Smooth Commerce
Glen Johnson is chief commercial officer with Smooth Commerce. Most recently, he was senior vice-president, football, for the Canadian Football League. He has more than 30 years of experience in technology, financial service, and professional sports.
Earnings Increase For Weyerhaeuser
Weyerhaeuser Company had net earnings of $271 million on net sales of $1.8 billion for the fourth quarter of 2017, an increase over net earning from continuing operations of $62 million on net sales of $1.6 billion for the fourth quarter of 2016. Adjusted EBITDA was $551 million for the quarter compared to $400 million in the year-ago period. The company says that average sales realizations for its wood products increased compared with the third quarter. However, sales volumes declined due to seasonality and weather-related transportation disruptions. Canadian and western log costs increased and raw material costs for oriented strand board and engineered wood products were also higher.
February 7, 2018
U.S. Online Home Improvement Sales Soar
U.S. online sales of home improvement products increased 34 per cent in 2017, reaching nearly $20 billion, says the NPD Group. Double-digit growth was prevalent across all major home improvement category segments last year – everything from plumbing and hardware to outdoor living and decor. Several categories ‒ hardware, lighting and ceiling fans, bath and faucets, and storage ‒ outpaced the overall industry’s growth in 2017. However, air filters and blinds were the fastest growing home improvement categories in eCommerce, far exceeding the industry average with 90 per cent gains in dollar sales compared to 2016. “The home improvement industry is realizing the impact of the ease that eCommerce brings to the consumer shopping experience,” says Joe Derochowski, executive director and home industry analyst at NPD. “And consumers are realizing the ways online shopping can meet their home improvement needs, from auto-replenishment of low-touch, staple purchases, to providing detailed guidance in finding the right product to fit their home.”
G.S. Equipco Chosen As Agency
Spectrum Brands has appointed G.S Equipco Ltd. as its new manufacturers agency in Ontario for its plumbing division. Beginning March 1, Equipco will assume sales responsibility in the wholesale plumbing channel for Pfister and Fortis brand accounts. Equipco’s territory within Ontario will be the area east of Highway 6. Great Lakes Marketing will continue to represent Spectrum Brands in the southwest Ontario region. Spectrum Brands has worked alongside Equipco in Western Canada since 2016. G.S. Equipco Ltd. was established in the Greater Vancouver, BC, area and has been representing specialized manufacturers the plumbing, heating, and HVAC/R industries since 1982. It currently represents 35 manufacturers across Canada.
IRWIN And LENOX Products Added
Stanley Black & Decker Canada has added IRWIN and LENOX tools and accessories to its global tools and storage group. It acquired the two brands in a transaction completed in 2017. IRWIN is a manufacturer and distributor of a broad line of professional hand tools and power tool accessories. Popular products include VISE-GRIP pliers and wrenches, MARATHON saw blades, QUICK-GRIP clamping tools, SPEEDBOR wood drilling bits, STRAIT-LINE marking tools, UNIBIT step drill bits, MARPLES fine woodworking tools, and HANSON taps and dies. LENOX has more than of a century of expertise in cutting technology. Its industrial saw blades are known for their high performance and guaranteed ability to cut through tough materials. Its product categories include reciprocating saw blades, hole saws, jig saw blades, hand saws, drill bits, portable band saw blades, screwdrivers, and utility knives.
Lowe’s To Convert L’Entrepôt RONA
Charlemagne, QC-based L’Entrepôt RONA will convert to Lowe’s Canada’s Reno Depot banner. The store will undergo an extensive 12-week transformation after which it will become Reno-Depot’s 23rd point of sale in Canada. The conversion will involve the redesigning of all departments, new racking, branding conversion, and new product categories such as appliances and seasonal. The store will remain open during the conversion.
Fortune Brands Sales Increase
Fortune Brands Home & Security, Inc. had sales of $1.4 billion for the fourth quarter of 2017, an increase of six per cent over sales in the fourth quarter of 2016. Operating income was $163 million for the quarter compared to $166.4 million in the year-ago period. Plumbing sales increased 10 per cent year over year with operating margin before charges/gains at 20.8 per cent; cabinet sales increased four per cent led with operating margin at 10.7 per cent; door sales were up six per cent with operating margin at 14.5 per cent; and security sales increased four per cent with operating margin at 15 per cent.
Net Sales Rise For DowDuPont
DowDuPont had net sales of $20.1 billion for the fourth quarter of 2017, a 13 per cent increase over net sales in the fourth quarter of 2016. Volume grew six per cent in all operating segments and geographies. Operating EBITDA for the quarter was $3.9 billion, an increase of 24 per cent over the year-ago period. The performance materials and coatings segment had net sales of $2.2 billion, up 15 per cent year over year. Operating EBITDA for the segment was $613 million, up 56 per cent over the year-ago period. The safety and construction segment had net sales of $1.3 billion, compared to net sales of $1.2 billion last year. Tyvek protective materials achieved double-digit per cent volume growth, while building solutions rose by a low-single-digit per cent. Corian design volume was constrained by raw material availability. Operating EBITDA for the segment was $285 million, up 26 per cent from operating EBITDA of $227 million in the year-ago period.
Speakers Lined Up For Dx3
Dx3, a Canadian digital marketing, retail, and advertising conference, has announced its first slate of speakers for the 2018 event. This year’s conference will include speakers from Amazon, Twitter, Google, Snapchat, Uber, and Element AI. The conference takes place March 7 and 8 at the Toronto Metro Convention Centre in Toronto, ON. For more information, click here